BUNZL PLC BUSINESS CASE

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March 2013

Bunzl Business Case March 2013

About Us

Bunzl is a growing and successful Group providing outsourcing solutions and value added distribution across the Americas, Europe and Australasia

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Bunzl Business Case March 2013

Business Overview

Sales channel

Business to business distribution £5.4bn revenue in 2012

Products

Wide range of non-food consumable products

Sourcing

From leading brand manufacturers Own brands and unbranded products Sourcing centre in Shanghai – no own manufacturing

Footprint

More than 12,800 employees International diversification: 27 countries, 4 continents

Key Facts

UK plc headquartered in London Listed on LSE; FTSE 100; Support Services sector

Financials

Revenue growth (CAGR 04-12): 11% Operating profit growth* (CAGR 04-12): 9% Average annual cash conversion† (04-12) of 97%

*Before intangible amortisation and acquisition related and corporate costs †Operating cash flow before acquisition related costs to operating profit before intangible amortisation and acquisition related costs 04-05 continuing operations only

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Bunzl Business Case March 2013

Benefits to Customers: Supply Chain

Global sourcing & procurement

International warehousing & distribution infrastructure

Consolidation of consumables

Range of delivery options

Customer

Supported by an integrated I.T. platform

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Bunzl Business Case March 2013

Value Proposition

• In-house procurement and PRODUCT COST INVENTORY INVESTMENT

self distribution is costly

COST TO ACQUIRE

• Bunzl applies its resources and expertise to reduce or eliminate many of the “hidden” costs of in-house procurement and self distribution

INVENTORY INVESTMENT CASH FLOW

DIRECT LABOUR & OVERTIME INVENTORY FINANCE COST EXPEDITED ORDERS

COST TO PROCESS

INBOUND FREIGHT PURCHASE ORDER ADMINISTRATION INVENTORY DAMAGE & SHRINKAGE

• The benefits to customers are

ACCOUNTS PAYABLE ADMIN

a lower cost of doing business and reduced working capital

STORAGE SPACE CAPITAL EMPLOYED

Outsourcing adds value to the customer -4-

Bunzl Business Case March 2013

Market Environment

Growing market sectors

Fragmented competitors

• Exposed to growing sectors including • Foodservice – away from home • Cleaning & Hygiene – away from home • Healthcare – demographics • Safety – increased legislation

• None do what we do, on our scale and across our markets • Bunzl’s national footprint provides competitive advantage

Customer base

Outsourcing trend • Customers and manufacturers focusing on their core business

• Strong customer base • Working with national and international leaders • Aligned with customer growth

Multiple growth drivers -5-

Bunzl Business Case March 2013

Strategy

Operating Model Efficiencies GDP+ Organic Growth

Acquisition Growth

ROIC 17.9% Consistent and proven strategy -6-

Bunzl Business Case March 2013

Strategy Building Blocks

Unique business model

Attractive markets portfolio

Balanced business portfolio

Operational focus

Global procurement

Acquisition strategy & track record

Experienced management

Strong financial discipline & track record

A platform for growth -7-

Bunzl Business Case March 2013

Business Model

Suppliers

Bunzl

Customers Grocery

Individual ranges

Consolidated offer

TO

TO

Foodservice Cleaning & Hygiene Safety Non-food Retail

• Global suppliers • Low cost sources • Commodities • Own brands

• International warehousing & distribution infrastructure • Consolidation • Supply chain management • Range of delivery options

Healthcare

One stop shop for non-food consumables -8-

Bunzl Business Case March 2013

Attractive Customer Markets Portfolio Healthcare 7% Disposable healthcare consumables range, including gloves, swabs, gowns and bandages, to the healthcare sector

Other 4% A variety of product ranges supplied to other markets such as government and education establishments

Non-Food Retail 8% Goods not for resale, including packaging and full range of cleaning and hygiene products, to department stores, boutiques, office supply companies, retail chains and home improvement chains

Grocery 29% Goods not for resale (items grocers use but do not actually sell), including food packaging, films, labels and cleaning and hygiene supplies, to grocery stores, supermarkets and retail chains

Safety 9% A complete range of personal protection equipment, including hard hats, gloves, boots and workwear, to industrial and construction markets.

Foodservice 29% Non-food consumables, including food packaging, disposable tableware, guest amenities, catering equipment, cleaning products and safety items, to hotels, restaurants, contract caterers, leisure sectors and food processors

Cleaning & Hygiene 14% Cleaning and hygiene materials, including chemicals and hygiene paper, to cleaning and facilities management companies, and industrial and healthcare customers.

c.80% resilient – Grocery, Foodservice, C&H, Healthcare -9-

Bunzl Business Case March 2013

Typical Products Foodservice

Grocery

Safety

Cleaning & Hygiene

Non-food Retail

Healthcare

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Bunzl Business Case March 2013

Balanced Business Portfolio

Geographic balance North America

7% Continental Europe

19% 54% 20%

UK & Ireland Rest of the World

Regional diversification • Our markets are at different stages of maturity • National footprints • International brands and local products

Customer markets balance • 6 market sectors with numerous sub-sectors • Products and markets - specialist distributors • Direct to customer or through a sub-distributor

Diversified by geography and sector -11-

Bunzl Business Case March 2013

Operational Focus

Decentralised operational structure • Hands on management with clear customer focus • Full P&L and working capital responsibility • Aligned incentive measurement with profit and ROCE

Investing • Majority of capex spend on IT systems and warehouse facilities • Robust IT and systems strategy e.g. Warehouse management, order systems and vehicle routing • Continually evaluating and upgrading our warehousing facilities

Sharing best practice -12-

Bunzl Business Case March 2013

Global Procurement

Sourcing

Preferred suppliers

+

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Own brands Commodities Low cost sources Eco-friendly products

Bunzl Business Case March 2013

Acquisition Strategy Key attributes • Financial returns • In resilient and growth markets • Business to business • Consolidated “not-for-resale” product offering

Acquisition types • Bolt-on – existing geography and market • Extending product range • Consolidating markets

Extracting value • Purchasing synergies • Warehouse & distribution efficiencies • Back office integration

• Anchor – new geography or market

• Similar model – no manufacturing

• Entering new geographies

• Fragmented customer base

• Entering new markets

• Strong local management

• Customer overlays • Product range extensions • Sharing best practice • Investment in infrastructure

• Scope for further consolidation

Acquired businesses continue to feel ‘local’ -14-

Bunzl Business Case March 2013

Acquisition Track Record

2004

2005

2006

2007

2008

2009

2010

2011

2012

7

7

9

8

7

2

9

10

13

Committed acquisition spend (£m)

302

129

162

197

123

6

126

185

272

Annualised acquisition revenue (£m)

430

270

386

225

151

27

154

204

518

Number of acquisitions

2004-2005 continuing operations only

Average acquisition spend £167m p.a.

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Bunzl Business Case March 2013

Geographic expansion 27 countries

23 countries

18 countries

12 countries

7 countries

1997*

2003*

2005*

2008

2012

Continuing geographic expansion * Continuing operations

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Bunzl Business Case March 2013

Experienced Management

Michael Roney Chief Executive

Brian May Finance Director

Patrick Larmon Executive Director

Experienced executive directors and management team -17-

Bunzl Business Case March 2013

Strong Financial Discipline

High return on capital

Return on operating capital 56.4% Return on invested capital (pre-tax) 17.9%

Strong balance sheet

Net debt/EBITDA 1.8x year end 2012

Low working capital requirements

Average working capital to sales at 9.6% in 2012

Low capex

Average of £23m p.a. over past 3 years

High free cash flow yield

Operating cash flow† to operating profit* average of 97% over past 9 years

Uniform financial reporting system

Across all geographies

Growing dividend stream

Dividend per share CAGR of 10% over past 8 years

Strong financial model †Before

acquisition related costs *Before intangible amortisation and acquisition related costs

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Bunzl Business Case March 2013

Strong Financial Discipline Average Cash Conversion* 97% 110% 103% 93%

2004**

102%

95%

92%

2005**

2006

93%

92%

2007

2008

2009

2010

93%

2011

2012

Consistently strong cash conversion *Operating cash flow before acquisition related costs to operating profit before intangible amortisation and acquisition related costs **04-05 continuing operations only

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Bunzl Business Case March 2013

Financial Track Record Revenue (£bn)

Operating profit (£m) 5.4

04-05 continuing operations only

Before amortisation and acquisition related and corporate costs 04-05 continuing operations only 297

5.1 4.6

4.8

353 312

371

323

4.2 259

3.6

241

3.3

218

2.9 183

2.4

2004 2005 2006 2007 2008 2009 2010 2011 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012

Adjusted eps (p)

Dividend per share (p) 28.2

68.5

As reported

41.7

23.4

As reported

60.6 52.7

38.7

26.4

71.8

20.6

55.9

21.6

18.7 17.0

45.1

15.7 13.3

32.1

2004 2005 2006 2007 2008 2009 2010 2011 2012

2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGRs 9% to 11% -20-

Bunzl Business Case March 2013

Business Case Summary Clear strategy for growth

• Entering new markets/product groups • Expansion/penetration of established markets • Strong operational focus

Strong business model

• Clear value added for customers and suppliers • Recurring revenues • “Big in the middle”

Attractive markets

• Resilient and growing markets • Multiple growth drivers • Fragmented with opportunity to consolidate

Balanced portfolio

• Product diversification • Geographical presence • Independence from customers and suppliers

Robust financial performance

• Consistent revenue and earnings growth • High cash generation • Cash reinvested at high return on capital • Strong and growing dividend stream

Attractive business model -21-

Bunzl Business Case March 2013

Contacts

Bunzl plc +44 20 7725 5000 Michael Roney - Chief Executive Brian May - Finance Director [email protected] www.bunzl.com

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Bunzl Business Case March 2013

Disclaimer No representation or warranty (express or implied) of any nature can be given, nor is any responsibility or liability of any kind accepted, by Bunzl plc with respect to the completeness or accuracy of the content of or omissions from this presentation. This presentation is for information purposes only and does not constitute and shall not be deemed to constitute an offer document or an offer in respect of securities or an invitation to purchase or subscribe for any securities in any jurisdiction. Persons in a jurisdiction other than the United Kingdom should ensure that they inform themselves about and observe any relevant securities laws in that jurisdiction in respect of this presentation. The presentation does not constitute an offer of securities for sale in the United States. None of the securities described in the presentation have been registered under the U.S. Securities Act of 1933. Such securities may not be offered or sold in the United States except pursuant to an exemption from such registration. This presentation contains forward-looking statements. They are subject to risks and uncertainties that might cause actual results and outcomes to differ materially from the expectations expressed in them. You are cautioned not to place undue reliance on such forward-looking statements which speak only as of the date hereof. Bunzl undertakes no obligation to revise or update any such forward-looking statements. Where this presentation is being communicated as a financial promotion it will only be made to and directed at: (i) those persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (ii) those persons falling within Article 49 of the Order; or (iii) to persons outside of the United Kingdom only where permitted by applicable law (all such persons together being referred to as “relevant persons”) and must not be acted on or relied on by persons who are not relevant persons.

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Bunzl Business Case March 2013